LendEDU evaluates home equity companies to help readers find the best home equity agreements. Our latest analysis reviewed 208 data points from 8 companies, with 26 data points collected from each.
Expertise: Banking, insurance, home loans
Cassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than a thousand times online.
Expertise: Equity compensation, home ownership, employee benefits, general finance
Chloe Moore, CFP®, is the founder of Financial Staples, a virtual, fee-only financial planning firm based in Atlanta, GA, and serving clients nationwide. Her firm is dedicated to assisting tech employees in their 30s and 40s who are entrepreneurial-minded, philanthropic, and purpose-driven.
A home equity shared agreement is an agreement between you and an investment company in which you receive a lump-sum cash payment in exchange for a portion of your equity. It isn’t a form of debt, so there are no monthly payments, and the eligibility requirements are more lenient.
We’ll guide you through the nuances of how a home equity sharing agreement works, which companies are the best, the benefits and downsides, and more.
Company Best for… Rating (0-5) Best overall
We believe the best home equity sharing companies offer excellent terms, reliable financial support, and a consistent customer experience. Here’s why we made our selections.
Check your state’s eligibility| State | Hometap | Unlock | Point |
| Alabama | ❌ | ❌ | ❌ |
| Alaska | ❌ | ❌ | ❌ |
| Arizona | ✅ | ✅ | ✅ |
| Arkansas | ❌ | ❌ | ❌ |
| California | ✅ | ✅ | ✅ |
| Colorado | ❌ | ✅ | ✅ |
| Connecticut | ❌ | ❌ | ❌ |
| Delaware | ❌ | ❌ | ❌ |
| Florida | ✅ | ✅ | ✅ |
| Georgia | ❌ | ❌ | ❌ |
| Hawaii | ❌ | ❌ | ✅ |
| Idaho | ❌ | ❌ | ❌ |
| Illinois | ❌ | ❌ | ✅ |
| Indiana | ❌ | ❌ | ✅ |
| Iowa | ❌ | ❌ | ❌ |
| Kansas | ❌ | ❌ | ❌ |
| Kentucky | ❌ | ❌ | ❌ |
| Louisiana | ❌ | ❌ | ❌ |
| Maine | ❌ | ❌ | ❌ |
| Maryland | ❌ | ❌ | ✅ |
| Massachusetts | ❌ | ❌ | ✅ |
| Michigan | ✅ | ✅ | ✅ |
| Minnesota | ✅ | ❌ | ✅ |
| Mississippi | ❌ | ❌ | ❌ |
| Missouri | ❌ | ❌ | ✅ |
| Montana | ❌ | ❌ | ❌ |
| Nebraska | ❌ | ❌ | ❌ |
| Nevada | ✅ | ❌ | ❌ |
| New Hampshire | ❌ | ❌ | ❌ |
| New Jersey | ✅ | ✅ | ✅ |
| New Mexico | ❌ | ❌ | ❌ |
| New York | ✅ | ❌ | ✅ |
| North Carolina | ❌ | ✅ | ❌ |
| North Dakota | ❌ | ❌ | ❌ |
| Ohio | ✅ | ❌ | ✅ |
| Oklahoma | ❌ | ❌ | ❌ |
| Oregon | ✅ | ✅ | ✅ |
| Pennsylvania | ✅ | ✅ | ✅ |
| Rhode Island | ❌ | ❌ | ❌ |
| South Carolina | ✅ | ✅ | ✅ |
| South Dakota | ❌ | ❌ | ❌ |
| Tennessee | ❌ | ✅ | ✅ |
| Texas | ❌ | ❌ | ❌ |
| Utah | ✅ | ✅ | ✅ |
| Vermont | ❌ | ❌ | ❌ |
| Virginia | ✅ | ✅ | ✅ |
| Washington | ✅ | ✅ | ✅ |
| West Virginia | ❌ | ❌ | ❌ |
| Wisconsin | ❌ | ❌ | ❌ |
| Wyoming | ❌ | ❌ | ❌ |
| Washington, D.C. | ❌ | ❌ | ✅ |
Founded in 2017, Hometap wants to make homeownership less stressful and more accessible. It’s our choice as the best for flexible qualification because it can provide a financing solution to homeowners with credit scores as low as 500 in as little as three weeks.
| Funding | $15,000 – $600,000 |
| Term length | 10 years |
| Credit score | 500+ |
| Prequalify | Get an estimate in just 60 seconds |
Hometap accepts homeowners with a minimum credit score of 500. No income requirements apply, and you can get an estimate without a hard credit check.
Stipulations may apply if you live in a flood zone. Hometap offers equity-sharing agreements to homeowners who live in floodplains, but only if they have appropriate flood insurance. Manufactured homes in flood zones are ineligible for a Hometap equity sharing agreement.
Application processYou can receive funds in just four steps:
Best for Longer Terms
LendEDU RatingFounded in 2015, Point was built after its team members experienced firsthand the frustrations of homeownership and debt financing. It’s one of the best because it is available in more states than our other picks, and it is the only one that made our list with a 30-year term.
The benefit of a longer term is that homeowners can spend more time stabilizing their financial situation to pay off existing debts before refocusing their efforts on setting aside the necessary funds to buy out Points position in the home.
| Funding | $25,000 – $500,000 |
| Term length | 30 years |
| Credit score | 500+ |
| Prequalify | Get an estimate in just 60 seconds |
Point looks for a minimum FICO credit score of 500. Your home must be worth more than $155,000, and you must retain at least 30% of the equity after the investment.
Investments are not offered on commercial properties, manufactured homes, modular homes, mobile homes, properties with five or more acres, properties with an LLC ownership, or co-ops. Its investment must be in at least the second lien position.
Application processThe application process can be completed in five steps. First, you’ll fill out a prequalification form to get a cash estimate. If you’re eligible, Point will have you schedule time to speak with a member of its team who can answer any questions.
Once all your questions are answered, you’ll be instructed to fill out an online application for Point to review. After Point reviews the application, a third-party appraiser will be selected to determine the value of your home for the final offer.
You’ll be asked to sign the closing documents if you agree to the terms in the final offer. Once the documents are signed, your funds will be transferred to your bank account.
Best for Partial Payments
LendEDU RatingFounded in 2020, Unlock employs a team of experienced home equity agreement professionals who strive to help homeowners utilize the equity in their homes to get the cash they need.
It accepts partial buyout payments, a feature other equity-sharing companies don’t offer. You won’t incur interest charges because you have no debt to repay. Unlock makes money if your home appreciates during the equity sharing term; should the home depreciate instead, Unlock shares in the loss.
| Funding | $30,000 – $500,000 |
| Term length | 10 years |
| Credit score | 500+ |
| Prequalify | Get an estimate in just 60 seconds |
Unlock looks for a minimum FICO credit score of 500. Income verification may be required if your score is below 550. Its investments are available for most residential real estate (single-family, condominiums, 2- to 4-unit properties, and townhomes), including owner- and non-owner properties.
You won’t be eligible if you have a bankruptcy, foreclosure action, short sale, or deed in lieu within the previous five years or have any 90-day mortgage delinquencies within the prior 24 months.
You’ll need to maintain hazard insurance equal to the replacement cost of your home during the 10-year term. Unlock must be named on all property insurance policies as a “mortgagee” or “additional interest.” If approved, you will receive funding within 30 to 60 days.
Application processYou can get an initial cash estimate in just 60 seconds by completing an online form. If you like the terms outlined, you can complete an application and schedule a call with a representative who will walk you through your Investment Estimate.
If the terms are accepted, an appraisal will be done to determine the value of your home for the Investment Closing Statement. Once the final documents are signed, the funds will be wired to your account.
A shared equity agreement allows you, the homeowner, to pull equity from the home in cash without taking out a loan. In return, the investing company gets a percentage of the future value of your home. The company collects its equity share when you buy out the agreement or sell the property.
There are two repayment models that most home equity sharing companies follow:
Contract terms may last 10 to 30 years. Should your home lose value during the contract term, the investing company shares in the loss. The amount you repay will be less than what you’d owe had the home maintained the same value throughout the term.
Here’s an example of how it works using the first repayment model. It shows how much a homeowner who received $25,000 in exchange for 20% of their equity would owe at the end of their term.
| Appreciated home | Depreciated home | |
| Starting home value | $500,000 | $500,000 |
| Valuation adjustment* | 5% | 5% |
| Adjusted home value | $475,000 | $475,000 |
| Home value at repayment | $575,000 | $375,000 |
| Equity being shared | 20% | 20% |
| Principal funding amount | $25,000 | $25,000 |
| Amount you owe | $45,000 ($25,000 principal + 20% of the $100,000 appreciation) | $5,000 ($25,000 principal – 20% of the $125,000 depreciation) |
*Most companies add a valuation adjustment to the appraisal of your home for risk purposes. The amount your home appreciated or depreciated is based upon the adjusted home value.
Companies advertise you can get up to $600,000 through a home equity sharing agreement. But the real amount you’ll receive is determined by a combination of factors:
Getting estimates directly from lenders is the most accurate way to know how much you could get.
There are some common fees you should know about before getting a home equity share agreement. These can include origination or investment fees, appraisal fees, and closing costs.
For example, let’s say you receive a principal funding amount of $25,000 in exchange for 20% of your home’s future value. If your home appreciates from $500,000 to $600,000 during the investment term, you’ll owe the company $45,000 ($25,000 principal + 20% of the $100,000 appreciation).
However, you may pay $2,344 to $4,075 upfront in closing costs, title charges, appraisal fees, and other expenses.
Equity sharing offers numerous benefits, but consider the potential drawbacks, including these agreements’ long-term implications and costs. Younger homeowners, in particular, should consider the potential future appreciation of their property and how sharing that appreciation might affect their financial goals.
Before making this—or any—financial decision, we think it’s crucial to consult a financial professional to understand the terms and assess how an equity-sharing agreement fits into your broader financial plan.
If you’re comfortable with equity sharing and understand its pros and cons, the next step is finding the right company to work with. We’ve given you several companies to choose from.
Asking yourself these questions can help you narrow down which one is best.
Considering how soon you can get the funds if approved is also helpful. If time is of the essence, an equity sharing agreement may not be the best option. For example, a personal loan could deliver cash as soon as the same day. The trade-off is that you’re taking on debt you’ll need to make monthly payments on.
Reading reviews or testimonials from past customers can give you a better idea of what people like or don’t like about a particular home equity-sharing company. As part of your research, check the ratings and reviews from previous customers.
A home equity sharing agreement isn’t a form of debt, so it can be a decent option for homeowners who need cash but can’t take on new monthly payments or meet the eligibility requirements of a home equity loan or line of credit.
A lender tries to determine whether you can repay a loan, but an investment company tries to determine the likelihood of your home appreciating. This difference allows homeowners with a low credit score to be eligible for a cash investment.
A home equity loan may be a better choice if you don’t want to give up a portion of your home’s equity, can afford additional monthly payments, and meet the eligibility requirements set by traditional lenders.
Home equity sharing agreements might make sense for:
While home equity sharing agreements offer a unique way to access your home’s equity, traditional home equity financing solutions like home equity loans, home equity lines of credit (HELOCs), and cash-out refinances are still popular.
Let’s compare these options to equity sharing agreements.
A home equity loan is a lump sum you borrow against your equity, which you repay over a fixed term with interest. Unlike an equity sharing agreement, a home equity loan requires monthly payments and typically has stricter credit score and income requirements.
A HELOC is a revolving credit line secured by your home’s equity. You can draw money as needed and only pay interest on what you borrow. Like home equity loans, HELOCs require monthly payments and have credit score and income requirements. Equity sharing agreements don’t have these requirements or monthly payments.
Check out this quick side-by-side comparison.
| Equity sharing agreement | Home equity loan or HELOC | |
| Minimum credit score | Poor credit accepted | Typically fair credit |
| Income requirement? | None | Yes, varies |
| Monthly payments? | None | Yes |
| Interest rates? | None | Yes |
Home equity sharing agreements are a good option if you’re worried about qualifying for a loan and don’t want to take on debt or monthly payments. If you are financially able to take on debt and cover the monthly payments, a home equity loan or HELOC may be better because you’re not giving up a portion of the future appreciation in your home. Either option is a major financial decision, so I recommend consulting with a financial professional to understand how this affects your personal finances.
No, there are no monthly payments or interest charges with home equity share agreements. Instead, you receive cash today for a percentage of your home’s future value. The company gets its share back when you sell the home or buy out the agreement.
It depends on how quickly your lender can determine the value of your home and get your paperwork finalized. For example, Hometap takes as little as three weeks. (You receive your money within four to seven business days of signing everything.) It may take longer if you opt for an in-person appraisal over a virtual one if you need extra time to gather your paperwork.
The short answer is yes.
Several factors determine the amount you receive. These factors include your home’s appraised value, housing debt, creditworthiness, and how you use the property.
Remember, most equity-sharing companies have low minimum credit score requirements, so homeowners with poor credit are eligible. Your credit can affect the cash you receive, but you might still be eligible for a large cash investment.
Not usually. You can use your home equity sharing agreement funds for anything and everything you’d like, whether it’s paying off high-interest debt, funding your kid’s college education, remodeling your home, or getting the income you need to keep supporting your current lifestyle.
One of the biggest downsides of home equity agreements is that if your home increases in value quite a bit, it could result in you owing much more than anticipated. If you perform home renovations that boost your property value, you could lose a decent chunk of that appreciation.
Luckily, some of the best home equity sharing companies (like Hometap) offer renovation adjustments. These adjustments allow you to subtract the estimated value of your renovations from your home value, so you owe less to the company.
With Hometap specifically, you may qualify for a renovation adjustment if you make qualifying changes of $25,000 or more. You must submit receipts and photos within 90 days of completing the project. If approved, an appraiser will determine the appraised value of your home with and without renovations.
Since 2020, LendEDU has evaluated home equity companies to help readers find the best home equity agreements. Our latest analysis reviewed 208 data points from 8 companies, with 26 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.
These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
Higher star ratings are ultimately awarded to companies that create an excellent experience for homeowners and provide transparent financing solutions. This includes offering online eligibility checks, cost transparency, and unique benefits that support homeowners throughout the term.
